Eli Broad changes his mind about donating his art collection

Financier billionaire Eli Broad decided to retain permanent control of his art collection in an independent foundation instead of donating it to museums.

According to Edward Wyatt, An Art Donor Opts to Hold On to His Collection, NYTimes.com, Jan. 8, 2008:

Coming on the eve of the opening, the decision is a potential embarrassment for the Los Angeles museum. It was widely criticized in 2001 for mounting a major exhibition of works from Mr. Broad’s collection without having secured a promised gift of the works, an act that is prohibited at many prominent art institutions because it can increase the market value of the collection. ***

[A]s his collection grew, and it became clear that no museum, the Los Angeles County Museum of Art included, would commit to placing a large percentage of the works on permanent exhibit. ***

Of course Mr. Broad also enjoys tax advantages by keeping much of his artworks in a tax-exempt foundation that lends the work out to museums. ***